Tuesday, February 24, 2009

What would Goldfinger do?

From the Economist (Link here). Some are wondering if gold may be a "Safe Haven" for their investments/savings. This graph should be studied before you run out and buy gold.
It shows the ratio of the Dow to gold. Today that would be approx 7 to 1. 7000 Dow to $1000/oz. Gold.
The article is titled Nice glister, but equities are a better long-term bet
Are you a betting person?
From the article...
A Dow/gold ratio of 2 would imply the former falling to 2000 or the latter rising to $3500 an ounce. Enormous profits would be made by those who got this call right.

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